Palladium, platinum attract investors’ attention

October 4, 2011 by Daniels Trading

Two alternative precious metals that have gained in value during the past few years have emerged has stellar investments, according to Bankrate.com.

Considered the newer metals when compared to gold and silver, palladium and platinum first were refined in the 1800s. The two metals also gain in value when gold does the same. David Morgan, who founded Silver-Investor.com, said the four metals gain in value together yet he advises first purchasing gold and silver to ground one's portfolio.

But palladium and platinum are increasingly in demand for their uses in the manufacture of catalytic converters while also serving as a hedge against rocky financial and economic times.

"Everyone needs gold and silver," Morgan told the news source."Platinum and palladium aren't for everyone because markets are smaller. They're nicer to have rather than need."

Reuters reports the price of palladium was firming on Tuesday. But, despite increased sales of cars in the U.S., which increases demand for materials used in catalytic converters, the price of platinum slipped as it followed the downward trajectory of equities.

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Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

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This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.